Maharashtra Government and leading private lender ICICI Bank today signed a memorandum of understanding (MoU) to implement the various state-sponsored financial assistance schemes.

Under the MoU, ICICI Bank would be disbursing the grants to the beneficiaries of the schemes through biometric system, which will be implemented initially in the three districts - Thane, Kolhapur and Beed - as pilot project.

The Central and State Governments have launched several financial assistance schemes such as Sanjay Gandhi Niradhar Yojna, Indira Gandhi Vruddha Bhumiheen Shetmajoor Anudan Yojna and National Maternity Benefit Scheme.

"We will be leveraging ICICI Bank's wide branch network to disburse funds under the various schemes," Labour Minister Hasan Mushrif told reporters here.

Currently, funds under these schemes are disbursed through post offices or co-operative banks, he said, adding the beneficiaries were facing difficulties in accessing their branches, which are mostly situated in talukas.

"We have now tied up with ICICI Bank, which has its network across villages, to disburse these funds," he said.

The beneficiaries would be provided smart cards, which will be based on biometric system, to withdraw the funds.

The system is expected to be functional from Gudi Padva festival which falls on April 4, the Minister said.

Maharashtra Government disburses around Rs 1,300 crore every year under various welfare schemes.